When offering adverts, do you sell them on a CPM, CPC or Duration basis?

[veloman]

So think to the future, I'd like to offer some limited advertising space on my forum. But, thinking about it, I'm wondering what the best method to sell them.

My thinking is from an advertiser's perspective, CPC is the best since you get guaranteed traffic. For example, if you charge £0.05 per click, and they buy 100 clicks (£5) then I just leave the advert up until it reaches that amount.

CPM is better for the publisher, but without the guarantee of clicks I think it's a bigger risk. Even at £1 CPM you might get no clicks from 5000 views - so a CPC basis would be better. Likewise you might get 500 clicks... It's just a gamble.

Admin-Junkies and a lot of other sites sell them on a time basis. I think this strikes a good balance - unlimited potential views, but only for a set time. The downside is that there is still no guarantee of clicks, but at least it's not a massive gamble like CPM where money can quickly disappear.

So what does everyone think? What method would you choose?

 

[Cedric]

Fantastic topic! In my experience, the advertising model I choose heavily depends on the nature of my site and the behavior of my audience. Ideally, I'd love to flow away from the time basis, but we're too small to do that. So, a time basis advertisement is better for a small site. This has been my go-to for newer sites, where traffic is still unpredictable. It offers a steady, if sometimes modest, income and is often more appealing to local businesses or smaller advertisers looking for straightforward advertising without the complexities of CPM or CPC.

When you reach to a point where you're a big, competitive player on the internet, it's best to change to a CPC method.

No matter the model, I can't stress enough the importance of ensuring the ads don't disrupt the user experience. Irrelevant or intrusive ads can deter visitors, regardless of how you're charging for them.
Thanks for bringing this up, @veloman . I'm eager to learn from others and perhaps refine my approach based on the knowledge here.